Policy Update - September #1
Screen Scraping - Policy and Regulatory Implications
The Government has released a consultation paper on the policy and regulatory implications of screen scraping.
The discussion paper seeks view on the screen scraping market's characteristics, potential risks to consumers, the wider regulatory framework, and the comparability of data obtained through screen scraping in relation to the Consumer Data Right (CDR).
Notably, the discussion paper seeks input on the recommendation from the Statutory Review that screen scraping should be banned where the CDR offers an alternative.
CDR rules - Expansion to the non-bank lending sector
Treasury has released exposure draft amendments to the CDR rules to extend the CDR framework to include the non-bank lending sector.
The proposed rules largely reflect the approach consulted on previously in last December's design paper.
Fintech Australia will make a submission. Details for how to get involved have been circulated to policy working groups. Submissions close on 6 October.
Treasury has also scheduled a Stakeholder Forum to discuss the changes on Wednesday 13 September 2023 between 10 am - 12 pm. Contact CDRRules@treasury.gov.au if you would like to register.
CDR Consent Review and operational enhancements design papers
Treasury has released two design papers on improving consent procedures and other operational enhancements to the CDR rules.
These proposals encompass a range of topics, including the bundling of consents, the selection of key consent terms, procedures for withdrawing consent, notifications, consents for de-identification, and addressing dark patterns.
Fintech Australia will make a submission. Details for how to get involved have been circulated to policy working groups. Submissions close on 6 October.
Open Banking Ecosystem Map - August Update
The latest iteration of the Open Banking Ecosystem Map was published this week.
The Map is a more accessible, easier to understand visual representation of the CDR ecosystem. It monitors and tracks participation in the CDR and Open Banking over time and generates insights to measure its success.
The latest (third) iteration found:
There has been a 63% increase in the number of recipients involve since December 2022;
CDR Representatives have skyrocketed, with 44 new Reps since March;
OSP usage is increasing rapidly, with more than half of ADRs now using them.
Check it out at: www.openbankingecosystemmap.com
Unfair trading practices consultation
The Government has commenced consultation on an unfair trading prohibition in the Australian Consumer Law.
The consultation regulation impact statement outlines potential policy options to address "unfair trading practices". Although the proposed provisions would not apply to the ASIC Act/financial services, it is possible these options could be extended to cover it in future.
We note the conduct potentially covered by this prohibition is broad, goes far beyond existing unconscionable conduct and false and misleading conduct provisions, and the consultation paper contemplates imposing civil penalties.
AFCA consults on new approach to small business lending complaints
AFCA is currently consulting onnew guidanceabout their approach to handling small business lending complaints.
The document signals a more expansive approach and appears to integrate more detailed credit assessment expectations. Pages 24-26 in particular may be of concern to SME lenders - it sets out further inquiries which might be expected depending on the circumstances.
Competition Policy Review
On August 23, 2023, the Treasurer announced a two-year Competition Policy Review.
Treasury has set up a review team to oversee and advise the government throughout the review, concentrating on improving competition across sectors. The review approach involves ongoing rolling policy projects, with public engagement and specific reform-focused papers to be released across the two years.
We look forward to engaging with these processes when more information on specific consultations is released.
Reserve Bank and Digital Finance CRC Complete CBDC Research Project
The RBA and the Digital Finance Cooperative Research Centre (DFCRC) have published a report detailing the outcomes of their collaborative CBDC research project.
The project involved industry participation and investigated potential use cases for a central bank digital currency in Australia. A significant aspect of this initiative was the RBA's issuance of a controlled 'pilot' CBDC to a carefully chosen group of industry participants. This hands-on approach aimed to illustrate how a CBDC could bring innovative improvements to payment and settlement services for both households and businesses. This pilot CBDC represented a departure from previous projects, as it held substantial legal significance.
ATO seeks fintechs to co-design innovative software services to support small businesses
The ATO is inviting FinTech Providers to join a register for collaboration and co-design of innovative software services aimed at helping small businesses with their tax, superannuation, and registration responsibilities. This collaboration includes developing prototypes to enhance the small business tax, superannuation, and registry processes.
There are currently two open ATO consultations:
Right-time tax payments and reporting
Preventing errors and mistakes through small business software
If you would like to participate in these small business consultations, please email the ATO Digital Partnership Office at DPO@ato.gov.au
